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rank Weston, supervisor of the Freemont Corporations Machining Department, was visibly upset after being reprimanded for his departments poor performance over the prior month. The departments cost control report is given below:

Freemont CorporationMachining Department Cost Control Report For the Month Ended June 30
	Actual Results		Planning Budget		Variances
Machine-hours		38,000		35,000
Direct labor wages	$	86,100	$	80,500	$	5,600	U
Supplies		23,100		21,000		2,100	U
Maintenance		137,300		134,000		3,300	U
Utilities		15,700		15,200		500	U
Supervision		38,000		38,000		0
Depreciation		80,000		80,000		0
Total	$	380,200	$	368,700	$	11,500	U

I just cant understand all these unfavorable variances, Weston complained to the supervisor of another department. When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable.

Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $92,000; the fixed component of the budgeted utilities cost is $11,700.

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Complete the performance report that will help Mr. Westons superiors assess how well costs were controlled in the machining department. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Freemont CorporationMachining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget Direct labor wages $86,100 U $80,500 Supplies 23,100 U 21,000 Maintenance 137,300 134,000 Utilities 15700 15,200 Supervision 38,000 38,000 Depreciation 80,000 80,000 Total $380,200 $0 $368,700

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